1
00:00:02,920 --> 00:00:07,280
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:08,560 --> 00:00:12,080
Speaker 2: I find DoorDash really interesting because it has performed really well.

3
00:00:12,119 --> 00:00:15,360
Speaker 2: The technology story in the quarter was new product lines

4
00:00:15,520 --> 00:00:18,599
Speaker 2: doing more stuff on the platform, but it was a

5
00:00:18,680 --> 00:00:20,720
Speaker 2: high bar quarter. So when you look at their guidance

6
00:00:20,720 --> 00:00:23,200
Speaker 2: for the full year in terms of gross bookings or orders,

7
00:00:23,520 --> 00:00:26,560
Speaker 2: it seems strong. But clearly the stock is down ten percent.

8
00:00:27,040 --> 00:00:28,840
Speaker 2: So what is it that the street's not liking.

9
00:00:29,040 --> 00:00:31,960
Speaker 3: It's hard to tell, and perhaps it's that ebit DAR

10
00:00:32,080 --> 00:00:34,960
Speaker 3: guidance not surpassing it for once, we're staying with doorda

11
00:00:35,360 --> 00:00:38,559
Speaker 3: stick in with a CFO Ravi in Uconda joining us

12
00:00:38,840 --> 00:00:41,760
Speaker 3: for those fourth quarter numbers, and I start with, well

13
00:00:41,800 --> 00:00:45,960
Speaker 3: the tough one, Ravi. The takeaway is not quite good enough.

14
00:00:46,000 --> 00:00:48,519
Speaker 3: Can you talk us through perhaps the adjusted a bit

15
00:00:48,600 --> 00:00:51,120
Speaker 3: DAR number, the concerns creeping in, or is it just

16
00:00:51,159 --> 00:00:52,599
Speaker 3: that your stocks performed too well?

17
00:00:52,600 --> 00:00:57,640
Speaker 1: Of late twenty twenty three was julia transformative view for us.

18
00:00:57,720 --> 00:00:59,880
Speaker 4: It was an inflection here for us, both from.

19
00:00:59,680 --> 00:01:03,160
Speaker 1: A growth as well as a profitability perspective. We've truly

20
00:01:03,200 --> 00:01:07,640
Speaker 1: become a daily habit, more users than ever before or

21
00:01:07,760 --> 00:01:09,800
Speaker 1: ordering from more categories than ever before.

22
00:01:10,160 --> 00:01:11,240
Speaker 4: And at the same.

23
00:01:11,000 --> 00:01:14,880
Speaker 1: Time, the business is doing really well where ibides three

24
00:01:14,920 --> 00:01:17,880
Speaker 1: times more in twenty three compared to twenty twenty two levels.

25
00:01:18,120 --> 00:01:20,200
Speaker 1: And what we are trying to do is continue to

26
00:01:20,280 --> 00:01:24,000
Speaker 1: drive innovation on the product front, introduce more products, introduce

27
00:01:24,080 --> 00:01:28,080
Speaker 1: more features, where we have users ordered from more categories

28
00:01:28,319 --> 00:01:30,319
Speaker 1: across thirty different countries around the goal.

29
00:01:31,319 --> 00:01:35,920
Speaker 3: You helped that net loss particularly driven down by efficiencies,

30
00:01:35,959 --> 00:01:39,080
Speaker 3: particularly on the logistics sides RAVI. But what therefore for

31
00:01:39,160 --> 00:01:42,000
Speaker 3: the bottom line to meet your guidance, your own given

32
00:01:42,000 --> 00:01:45,120
Speaker 3: guidance for Abita adjusted ABITDA going forward, what do you

33
00:01:45,160 --> 00:01:46,280
Speaker 3: need to do? Do you think.

34
00:01:47,720 --> 00:01:51,480
Speaker 1: Our goal is always to drive more users to the platform,

35
00:01:51,600 --> 00:01:52,960
Speaker 1: continue to order more.

36
00:01:53,480 --> 00:01:56,280
Speaker 4: Profitability in our business is driven by growth.

37
00:01:56,560 --> 00:01:58,800
Speaker 1: We saw that in twenty three. Our goal is to

38
00:01:58,880 --> 00:02:01,520
Speaker 1: continue to do the same twenty twenty four. And at

39
00:02:01,520 --> 00:02:03,800
Speaker 1: the same time, if you look at our operating expenses,

40
00:02:04,160 --> 00:02:07,440
Speaker 1: they've been relatively flat for the last six quarters, while

41
00:02:07,480 --> 00:02:10,280
Speaker 1: we've continued to drive revenue growth north of thirty percent.

42
00:02:10,639 --> 00:02:12,440
Speaker 1: When I look at twenty twenty four, our goal is

43
00:02:12,480 --> 00:02:14,320
Speaker 1: going to be the same, which is we're going to

44
00:02:14,360 --> 00:02:17,160
Speaker 1: drive users, We're going to drive order frequency, We're going

45
00:02:17,240 --> 00:02:21,360
Speaker 1: to continue to drive leverage from an overall operating expense perspective.

46
00:02:20,919 --> 00:02:24,280
Speaker 2: As well, Rabbi, there are loads of names on the

47
00:02:24,320 --> 00:02:27,280
Speaker 2: street that are saying there's nothing wrong with the report, nothing.

48
00:02:27,080 --> 00:02:27,639
Speaker 4: Bad in it.

49
00:02:28,000 --> 00:02:30,240
Speaker 2: Maybe they look at the four year bookings guidance and

50
00:02:30,320 --> 00:02:34,040
Speaker 2: say that it indicates maybe deceleration in the back end

51
00:02:34,080 --> 00:02:36,639
Speaker 2: of the year. So let's put the numbers to one side.

52
00:02:36,840 --> 00:02:39,200
Speaker 2: What does the world look like right now to door Dash,

53
00:02:39,280 --> 00:02:42,000
Speaker 2: both in terms of like driver supply demand from the

54
00:02:42,040 --> 00:02:43,400
Speaker 2: consumer corporate demand.

55
00:02:44,960 --> 00:02:48,440
Speaker 1: Consumer demand on the platform continues to be really strong.

56
00:02:49,000 --> 00:02:50,760
Speaker 1: If you look at twenty three in a year when

57
00:02:50,760 --> 00:02:54,320
Speaker 1: people thought consumers were pulling back, our users set a

58
00:02:54,360 --> 00:02:55,000
Speaker 1: record high.

59
00:02:55,560 --> 00:02:56,720
Speaker 4: Our scale at.

60
00:02:56,800 --> 00:03:00,960
Speaker 1: Thirty seven million consumers globally news to order with us

61
00:03:01,040 --> 00:03:04,359
Speaker 1: every single month, and usage levels have also increased, where

62
00:03:04,360 --> 00:03:07,359
Speaker 1: our order frequency has reached our record high. And from

63
00:03:07,360 --> 00:03:11,000
Speaker 1: a supply perspective, we've been really well supplied. Supply has

64
00:03:11,040 --> 00:03:13,440
Speaker 1: been as good as been over the last couple of years.

65
00:03:13,919 --> 00:03:16,120
Speaker 4: When you look at the consumer demand, it's really strong.

66
00:03:16,120 --> 00:03:18,280
Speaker 1: When you look at the supply side metrics, it continues

67
00:03:18,320 --> 00:03:20,760
Speaker 1: to be really strong, which is allowing us to drive

68
00:03:20,919 --> 00:03:23,480
Speaker 1: growth as well as the bottom line profitability that you're

69
00:03:23,520 --> 00:03:26,200
Speaker 1: seeing in the business today, Robbie.

70
00:03:26,440 --> 00:03:29,080
Speaker 2: I always think about though DASH it's like a really

71
00:03:29,120 --> 00:03:31,840
Speaker 2: big software company and we don't really have a talk

72
00:03:31,880 --> 00:03:34,120
Speaker 2: about that side of the business. Right, the creation of

73
00:03:34,160 --> 00:03:38,720
Speaker 2: a marketplace, but also you're essentially offering software to third

74
00:03:38,720 --> 00:03:42,160
Speaker 2: parties making their back end. How is that side of

75
00:03:42,160 --> 00:03:43,000
Speaker 2: your business doing.

76
00:03:44,440 --> 00:03:48,400
Speaker 1: Our platform services business, which is the software aspect of

77
00:03:48,440 --> 00:03:50,800
Speaker 1: our business, continues to do really well.

78
00:03:51,280 --> 00:03:54,520
Speaker 4: Our goal is to be with where merchants want us

79
00:03:54,560 --> 00:03:54,760
Speaker 4: to be.

80
00:03:55,360 --> 00:03:58,360
Speaker 1: We want to power merchants with their own first party channel.

81
00:03:58,400 --> 00:04:02,119
Speaker 1: We offer a product called Storefront, which powers merchants' own websites,

82
00:04:02,120 --> 00:04:04,360
Speaker 1: and at the same time we are providing our logistics

83
00:04:04,400 --> 00:04:07,720
Speaker 1: engines for merchants in order to help them augment their

84
00:04:07,760 --> 00:04:09,920
Speaker 1: own service as well.

85
00:04:10,000 --> 00:04:13,480
Speaker 3: You're not just serving merchants in the United States. You

86
00:04:13,560 --> 00:04:16,359
Speaker 3: made a key acquisition, and I'm thinking of Walt in

87
00:04:16,360 --> 00:04:19,800
Speaker 3: particular the effort to go into national RAWI do you

88
00:04:19,880 --> 00:04:22,800
Speaker 3: stay in the countries you're in and expand from there,

89
00:04:22,920 --> 00:04:25,200
Speaker 3: even though perhaps a lot as populated as others in

90
00:04:25,240 --> 00:04:27,960
Speaker 3: Western Europe? Or do you look to acquire or build

91
00:04:27,960 --> 00:04:29,160
Speaker 3: yourself elsewhere.

92
00:04:30,839 --> 00:04:34,120
Speaker 1: Today we are operating in about twenty eight countries outside

93
00:04:34,200 --> 00:04:35,400
Speaker 1: the United States.

94
00:04:35,600 --> 00:04:37,760
Speaker 4: When I look at our international business.

95
00:04:37,360 --> 00:04:40,960
Speaker 1: It's going really fast, sometimes even five to six times

96
00:04:41,000 --> 00:04:44,120
Speaker 1: faster than peers, which is allowing us to gain share

97
00:04:44,400 --> 00:04:47,160
Speaker 1: in virtually almost all of the markets that we operate in.

98
00:04:47,800 --> 00:04:50,039
Speaker 1: Even in the markets that we operate in today, we

99
00:04:50,120 --> 00:04:53,360
Speaker 1: are just serving a small fraction of the users. We

100
00:04:53,400 --> 00:04:55,880
Speaker 1: have our hands full with our existing markets. We're going

101
00:04:55,920 --> 00:04:59,600
Speaker 1: to continue to innovate in those markets by offering new products,

102
00:04:59,760 --> 00:05:02,600
Speaker 1: bring grocery to many of their national markets, where the

103
00:05:02,640 --> 00:05:05,400
Speaker 1: penetration levels in some countries are even higher than what

104
00:05:05,400 --> 00:05:08,960
Speaker 1: we're seeing in the US. As always, our goal is

105
00:05:09,000 --> 00:05:12,880
Speaker 1: to drive improvements in selection, drive improvements in quality as

106
00:05:12,880 --> 00:05:15,400
Speaker 1: well as affordability across all the countries that we operate

107
00:05:15,440 --> 00:05:15,839
Speaker 1: in today.

108
00:05:15,880 --> 00:05:18,720
Speaker 3: And let's talk about that affordability. Tony also echoing that, then,

109
00:05:18,760 --> 00:05:20,800
Speaker 3: really twenty twenty four is about making sure that the

110
00:05:20,839 --> 00:05:23,240
Speaker 3: service is affordable. How do you do that, Rabi? When

111
00:05:23,240 --> 00:05:26,320
Speaker 3: we've got you know, still relatively information re environments only

112
00:05:26,360 --> 00:05:26,640
Speaker 3: here in the.

113
00:05:26,680 --> 00:05:30,840
Speaker 1: US, affordability is a key strategic priority for US and.

114
00:05:31,080 --> 00:05:31,880
Speaker 4: Top of mind.

115
00:05:32,440 --> 00:05:35,800
Speaker 1: Today more than half of our users do not pay

116
00:05:35,800 --> 00:05:36,839
Speaker 1: any delivery fee.

117
00:05:37,040 --> 00:05:40,839
Speaker 4: Almost eighteen million subscribers on our dash Pass program, and

118
00:05:40,920 --> 00:05:42,320
Speaker 4: we've launched that program.

119
00:05:42,040 --> 00:05:45,520
Speaker 1: Just about five years ago and we've saved consumers over

120
00:05:45,640 --> 00:05:48,520
Speaker 1: ten billion dollars. And at the same time we are

121
00:05:48,560 --> 00:05:52,000
Speaker 1: innovating on the product side. We're really proud that low

122
00:05:52,040 --> 00:05:55,200
Speaker 1: income families can use government subsidies to be able to

123
00:05:55,320 --> 00:05:58,160
Speaker 1: order groceries on the platform. And this is our way

124
00:05:58,200 --> 00:06:01,680
Speaker 1: of giving back convenience, value and time to our consumers.

125
00:06:03,720 --> 00:06:07,360
Speaker 2: Robbie, let's use free cash flow as a kind of

126
00:06:07,920 --> 00:06:11,760
Speaker 2: strategy conversation. You know, you did really well twenty twenty three,

127
00:06:12,440 --> 00:06:14,880
Speaker 2: but you know, Caroline bring out some really kind of

128
00:06:15,279 --> 00:06:17,719
Speaker 2: big points. There's a lot of anxiety right about credit

129
00:06:17,720 --> 00:06:20,839
Speaker 2: card data, and I bring that up because at some

130
00:06:20,960 --> 00:06:24,440
Speaker 2: point the consumer might go away and like your your

131
00:06:24,440 --> 00:06:27,440
Speaker 2: industry peers, you might have to say we need to

132
00:06:27,440 --> 00:06:33,080
Speaker 2: do more discounts incentivizing promotional work. And I'm assuming that

133
00:06:33,080 --> 00:06:35,320
Speaker 2: that does impact free cash flow going forward.

134
00:06:37,760 --> 00:06:40,040
Speaker 1: Free cash flow is a really important metric for us.

135
00:06:40,080 --> 00:06:42,600
Speaker 1: If you look at twenty twenty three, I'm really proud

136
00:06:42,680 --> 00:06:45,840
Speaker 1: that we generated over one point three billion of free

137
00:06:45,920 --> 00:06:48,360
Speaker 1: cash flow, which, as you pointed out, as an important

138
00:06:48,360 --> 00:06:50,600
Speaker 1: help metric for US and investors when we look at

139
00:06:50,600 --> 00:06:54,080
Speaker 1: the overall health of the business, our focus has always

140
00:06:54,080 --> 00:06:58,480
Speaker 1: been on product as well as innovation in terms of technology.

141
00:06:58,720 --> 00:06:59,960
Speaker 4: I mean, just a few examples.

142
00:07:00,160 --> 00:07:02,920
Speaker 1: The way we're driving growth is today we have more

143
00:07:02,920 --> 00:07:05,919
Speaker 1: than one hundred and fifty thousand stores that are outside

144
00:07:05,920 --> 00:07:08,920
Speaker 1: of restaurants. Virtually, when I joined the company a few

145
00:07:09,000 --> 00:07:12,360
Speaker 1: years ago, there was no stores that are grocery related

146
00:07:12,400 --> 00:07:15,760
Speaker 1: on the platform. Our goal is to bring technology, bring

147
00:07:15,800 --> 00:07:19,240
Speaker 1: product innovation to the thirty seven million consumers.

148
00:07:18,760 --> 00:07:21,520
Speaker 4: We have on the platform, and that's what's going to drive.

149
00:07:21,360 --> 00:07:23,760
Speaker 1: Both growth as well as profitability in the business for us,

150
00:07:23,960 --> 00:07:28,440
Speaker 1: which ultimately what.

151
00:07:26,760 --> 00:07:29,520
Speaker 2: RAWI what is the next technology frontie, what is the

152
00:07:29,560 --> 00:07:32,520
Speaker 2: next new product for door Dash.

153
00:07:33,080 --> 00:07:38,840
Speaker 1: We are operating in three large segments, Restaurants, grocery, and international,

154
00:07:39,040 --> 00:07:41,840
Speaker 1: each of which are roughly about a trillion dollars, where

155
00:07:41,840 --> 00:07:43,320
Speaker 1: the penetration levels are.

156
00:07:43,200 --> 00:07:44,400
Speaker 4: Still very very early.

157
00:07:45,040 --> 00:07:48,480
Speaker 1: I'm excited about the progress we've made, but we continue

158
00:07:48,520 --> 00:07:52,160
Speaker 1: to drive more in terms of adding more categories, adding

159
00:07:52,160 --> 00:07:55,560
Speaker 1: more selection, which is content on the platform, while making the.

160
00:07:55,520 --> 00:07:58,760
Speaker 4: Product more affordable as well as high quality. If we

161
00:07:58,840 --> 00:08:01,800
Speaker 4: continue to do that, we're going to drive more users,

162
00:08:02,320 --> 00:08:04,800
Speaker 4: have them order more with US, which is ultimately going

163
00:08:04,840 --> 00:08:06,000
Speaker 4: to drive productibility in the.

164
00:08:07,960 --> 00:08:09,960
Speaker 2: CFO. Rabbi in a kind of great sketch up with

165
00:08:10,040 --> 00:08:10,280
Speaker 2: you here